ChargePoint Continues to Lose Voltage

Earnings haven't provided a spark for the EV charging company, so let's see what the charts are saying.

ChargePoint Holdings (CHPT) is lower in early trading Friday in reaction to a disappointing revenue forecast by the EV charging station firm Thursday evening. In our November 17 review of the charts we wrote that, "In the long run I expect that charging stations will be a big and profitable business. In the short run I fear that the stock price of CHPT is going to retest the 2022 lows."

Let's check out the charts and indicators again of this Action Alerts PLUS holding.

In the daily bar chart of CHPT, below, we can see that the shares have remained weak into early December. Prices continued to remain in a downward trend below the declining 50-day and 200-day moving average lines.

The daily On-Balance-Volume (OBV) remained in a downtrend telling us that sellers of CHPT remained more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is still bearish.

 

In the weekly Japanese candlestick chart of CHPT, below, we can see two small real bodies or spinning tops for the two most recent candles. These could have become reversals IF there was a bullish candle this week. Unfortunately this week's candle is likely to be red (bearish).

 

Trading volume has been weak but the OBV line has been increasing. The MACD oscillator is bearish.

 

 

In this daily Point and Figure chart of CHPT, below, we can see a potential downside price target in the $8 area. Ouch.

 

 

In this second Point and Figure chart of CHPT, below, we used weekly price data and here, too, we see the same price target of $8.

 

 

Bottom-line strategy: Continue to avoid the long side of CHPT.

 

(CHPT is a holding in the Action Alerts PLUS member club . Want to be alerted before AAP buys or sells CHPT? Learn more now. )

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